Sahas Urja Limited issuing 70 lakh units IPO share to general public from Ashwin 6

Sahas Urja Limited, the developer of the 86 MW Solu Khola Dudh Koshi hydro project will be issuing 70,00,000 units worth Rs 70 crore as Initial Public Offering to the general public from (Ashwin 6-10, 2078). The early closing date of this issue is on Ashwin 10 and if the issue is not fully subscribed till Ashwin 10, then it can be extended up to Ashwin 20, 2078.

Out of the offered 70,00,000 units; 3% of the total offered shares to the general public i.e. 2,10,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 3,50,000 units have been set aside for the mutual funds. The remaining 64,40,000 units are for the general public.

Applications can be placed for a minimum of 10 units and a maximum of 10,50,000 units. 

NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance. 

The company has proposed to issue a total of 1.05 crore unit shares to the locals and the general public via IPO in multiple phases. The first phase of the IPO is already issued and allotted to the locals of the project affected area.

After the issuance of shares to locals and the general public; the company's paid-up capital will be Rs 3.50 arba and public and promoter shares holding will be 70:30.

ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP issuer rating double B plus) to Sahas Urja Limited (Sahas).

The Solu Khola project is the biggest hydro project in Nepal promoted by the private power producers and is being built with a total estimated cost of Rs 11.86 Arba where NIBL led a consortium of nine banks that have lent Rs 8.65 Arba.

Incorporated in February 2014 as a private limited company, Sahas Urja Limited (Sahas) was converted to a public limited company in September 2014 to facilitate public participation. The paid-up capital of the company as of mid-July 2020 was NPR 2,450 million. The major promoters include Mr. Mahendra Kumar Giri (2.29% stake), Mr. Sushil Thapa (2.11%), Ms. Anupama Thapa (2.04%), and Mr. Him Prasad Pathak (1.94%), among others. The company plans to raise NPR 1,050 million, i.e. 30% of the total equity from general shareholders, through the proposed IPO issue. It is developing an 86-MW Solu Khola (Dudh Koshi) HEP in Solukhumbu District, Province 1 of Nepal. The project is a run-of-the-river (R-o-R) type and is being developed at a 40.70% probability of exceedance (Q40.70).

Click here for IPO Offer Letter: